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Withholding tax in Latvia 2026
Latvia's outbound menu is layered: 0% on most dividends (company-taxed profits), 5% on non-copyright royalties and broker-intermediated interest for European Economic Area (EEA) residents, 25.5% on copyright royalties and standard interest, and a 10% gross option for rents.
Payments of almost any kind to low-tax jurisdictions face a 25.5% withholding unless the payer proves genuine non-avoidance.
At a glance
- top rate
- 25.5%
- entry band
- 0% on exempt dividends and publicly traded instrument interest
- tax year basis
- Withheld when paid
- filing deadline
- Final for most withholdings; returns required over EUR 200,000 of Latvian income
- residency basis
- Latvian-source payments to non-residents
- regime flag
- 3% withholding on property-sale proceeds to Latvian business buyers
Rates
Withholding on non-residents (2026)
| Rate | Base | Applies to |
|---|---|---|
| 0% | — | Dividends from post-2017 company-taxed profits (6% under the alternative model; 25.5% for pre-2018 earnings) |
| 25.5% | Gross | Interest — but 0% on publicly traded instruments and EEA government bonds; 5% via supervised investment providers for EEA residents |
| 5% | Gross | Royalties other than copyright |
| 25.5% | Gross less 25–50% deemed expenses | Copyright royalties to authors and performers |
| 10% | Gross rent | Latvian property rents where the landlord opts out of expense claims (otherwise 25.5%) |
| 25.5% | Gross | Artists, sportspeople and coaches; professional services; nearly any payment into low-tax jurisdictions |
Thresholds & allowances
- Property-sale withholding3% of proceeds
Deducted by Latvian company or entrepreneur buyers; the seller can file for net 25.5% treatment instead
- High-earner filingEUR 200,000
Non-residents above this of Latvian income must file for the 3% surcharge
Residency
Residency trigger
Payers withhold at source; non-residents with unwithheld Latvian income file annually, and departures mid-year require a return before leaving.
Non-resident treatment
Treaty rates prevail; EEA residents with 75%+ Latvian income unlock allowances by filing, and Ukrainian refugees get special monthly allowances of EUR 510 plus EUR 250 per child through their employers.
Notes
- Non-resident employees of foreign employers self-pay monthly by the 15th — no employer withholding exists for them.
- The solidarity tax follows non-resident employees too once earnings pass the EUR 105,300 ceiling.
- European Union rules for faster withholding-tax refunds — Faster and Safer Relief of Excess Withholding Taxes (FASTER) — apply from 2030; Latvia has not yet transposed them.
FAQ
What does Latvia withhold on payments abroad?
0% on most dividends, 5% on non-copyright royalties, 25.5% on interest and copyright royalties (after 25–50% deemed expenses), 10% on gross rents by election — treaties can reduce these.
What happens when a non-resident sells Latvian property?
A Latvian business buyer withholds 3% of the price; the seller can instead file a return and pay 25.5% on the actual net gain — sales between private persons are self-declared.
Figures: tax year 2026, compiled from public sources. Not tax advice.